MIROMAR, Florida – Spirit Airlines advises shareholders to reject a tender offer for shares of JetBlue three days after it was hostile to its attempt to create the country’s fifth-largest airline.
On Thursday, Spirit reiterated that any attempt to merge with JetBlue will face significant regulatory hurdles, largely due to JetBlue alliance with American Airlines in the northeast. The Justice Department is suing to block the deal.
JetBlue offered to buy Spirit Airlines after the proposed acquisition of this carrier Frontier Airlines, a deal that Spirit supports despite the lower offer price.
On Monday, JetBlue launched a hostile Spirit’s takeover bid, directly asking low-cost shareholders to vote against ties to Frontier Group Holdings Inc.
Monday’s offer from JetBlue was $ 30 per share in cash, or more than $ 3.2 billion, but said the April 5 offer of $ 33 per share was still available when Spirit entered into negotiations.
The Spirit Board rejected JetBlue’s initial bid of $ 3.6 billion on May 2.
Florida-based Spirit shareholders are scheduled to vote June 10 on Frontier’s offer of cash and shares worth about $ 2.9 billion when it was announced in February.